El Salvador Market Guide - October2014

Table of Contents

FOREWORD ................................................................................................................................................................ 1

TRINIDAD AND TOBAGO/EL SALVADOR TRADE AGREEMENT ............................................................... 1

SECTION 1: MARKET OVERVIEW .................................................................................................................................. 2

1.1 Introduction ............................................................................................................................................... 2

1.2 Population .................................................................................................................................................. 2

1.3 Demographics ............................................................................................................................................ 2

1.4 Climate ........................................................................................................................................................ 2

1.5 Language .................................................................................................................................................... 2

1.6 Hours of Business ...................................................................................................................................... 3

1.7 Public Holidays ......................................................................................................................................... 3

1.8 Travel & Transportation ........................................................................................................................... 3

1.9 Time Zone .................................................................................................................................................. 4

1.10 Communication ..................................................................................................................................... 4

SECTION 2: ECONOMIC AND POLITICAL ENVIRONMENT ............................................................................................ 5

2.1 Economic Performance ............................................................................................................................. 5

2.2 Business ...................................................................................................................................................... 6

2.3 Labour Force .............................................................................................................................................. 6

2.4 Political Stability and Structure ............................................................................................................... 6

SECTION 3: TOP MARKET OPPORTUNITIES & PROSPECTS ........................................................................................... 6

3.1 Aerated Beverages Products .................................................................................................................... 6

3.2 Jams and Jellies Products ......................................................................................................................... 7

3.3 Juices ........................................................................................................................................................... 7

SECTION 4: MARKET ENTRY STRATEGIES .................................................................................................................... 8

4.1 Using an Agent/Distributor ..................................................................................................................... 8

4.2 Joint Ventures/Licensing .......................................................................................................................... 8

4.3 Franchising ................................................................................................................................................. 8

4.4 Selling to the Government ....................................................................................................................... 8

4.5 Employing Staff in the Market ................................................................................................................ 9

SECTION 5: SELLING, MARKETING & PROMOTIONS .................................................................................................... 9

5.1 Selling Factors/Techniques....................................................................................................................... 9

5.2 Trade Promotion ..................................................................................................................................... 10

5.3 Advertising .............................................................................................................................................. 10

5.4 Direct Marketing ..................................................................................................................................... 10

5.5 Distribution and Sales Channels ........................................................................................................... 10

5.6 Pricing ....................................................................................................................................................... 11

5.7 Payment Terms ........................................................................................................................................ 12

5.8 Protecting Your Intellectual Property................................................................................................... 13

5.9 Due Diligence........................................................................................................................................... 13

SECTION 6: REGULATIONS & STANDARDS................................................................................................................. 14

6.1 Sanitary Product Registration................................................................................................................ 14

6.2 Product Shipment/Samples .................................................................................................................... 15

6.3 Packaging, Labelling and Marking Requirements ............................................................................. 15

6.4 Temporary Entry ..................................................................................................................................... 16

6.5 Customs Regulations .............................................................................................................................. 16

SECTION 7: TRADE ENVIRONMENT ............................................................................................................................ 17

7.1 Import and Export Statistics .................................................................................................................. 17

7.2 Import Tariffs & Taxes ............................................................................................................................ 20

7.3 Trade Barriers .......................................................................................................................................... 20

7.4 Prohibited and Restricted Imports ........................................................................................................ 21

7.5 Shipping Information ............................................................................................................................. 21

7.6 Trade Agreements ................................................................................................................................... 21

SECTION 8: FINANCING EXPORTS TO COSTA RICA .................................................................................................... 22

SECTION 9: USEFUL CONTACTS ................................................................................................................................. 23

Customs and Excise Division .......................................................................................................................... 23

Government of the Republic of Trinidad and Tobago ................................................................................ 23

Custom House (Port-of-Spain) ........................................................................................................................ 23

Appendices ................................................................................................................................................................... 26

Appendix I – Government Tenders from El Salvador ................................................................................. 27

Appendix II – Minimum Wages ..................................................................................................................... 30

Appendix III – Public Translators .................................................................................................................. 31

Page 1 of 27

FOREWORD

This Market Guide is intended to give Trinidad & Tobago exporters relevant, accurate and valuable

information for successfully exporting their goods to El Salvador. The information contained therein is

based on exporTT’s visits to the market, in-market consultant information, and desk research. Feel free to

contact us at 1.868.623.5507 to discuss your exporting needs.

**********

TRINIDAD AND TOBAGO/EL SALVADOR TRADE AGREEMENT

On October 10, 2014, after four rounds of negotiations, El Salvador and Trinidad and Tobago

successfully concluded the Partial Scope Trade Agreement (PSTA) that will strengthen the trade

and cooperation ties between the parties. The legal instrument includes Market Access, Rules of

Origin, Sanitary and Phytosanitary Measures, Technical Barriers to Trade, Trade Remedies and

Dispute Settlement Disciplines.

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SECTION 1: MARKET OVERVIEW

1.1 Introduction

The smallest country in Central America geographically, El Salvador has the third largest

economy in the region. The country has a population of some 6.1 million people, 37% of whom

live below the poverty line. El Salvador is described as having a large divide between the upper

and lower classes with a small middle class, which accounts for about 7% of the population. It

borders the North Pacific Ocean, between Guatemala and Honduras. There are 14 departments:

Ahuachapan, Cabanas, Chalatenango, Cuscatlán, La Libertad, La Paz, La Unión, Morazán, San

Miguel, San Salvador, San Vicente, Santa Ana, Sonsonate, and Usulutan. The capital is San

Salvador and the country gained independence from Spain on September 15, 1821.

1.2 Population

Source: CIA World Fact book

1.3 Demographics

Gentilic: Salvadoran

Salvadorian

Salvadorean

Ethnic Groups: Mestizo 86.3%, White 12.7%, Amerindian 1% (2007 census)

Religions: Roman Catholic 57.1%, Protestant 21.2%, Jehovah's Witnesses

1.9%, Mormon 0.7%, other religions 2.3%, none 16.8% (2003 est.) Source: CIA World Fact book

1.4 Climate

The weather is tropical on the coast and temperate in the uplands. The rainy season runs from

May to October and the dry season runs from November to April.

1.5 Language

The official language is Spanish, however Nahua is the language among some Amerindians.

Population: 6,125,512 (July 2014 est.)

Population Growth 0.27% (2014 est.)

Median Age Total: 25.6 years

Male: 24.1 years

Female: 27.1 years (2014 est.)

Life Expectancy 74.18 years

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1.6 Hours of Business

Commercial hours usually run from 8:00 a.m. to noon and from 2:00 p.m. to 4:00 p.m. or 5:00 p.m.

The traditional siesta, from around noon to 2:00 p.m., is still popular there. Breakfast meetings

are common and usually begin as early as 7:00 - 7:30 a.m. Dinner meetings could begin around

9:00 - 9:30 p.m. Lunch meetings are also frequently scheduled.

1.7 Public Holidays

* Salvadoran government offices remain closed for an entire week during Holy Week, Feast of

San Salvador Holidays (early August), and between Christmas and New Year’s Eve. Many offices

are closed during the period from December 15 to the end of the first week in January. Exporters

should not visit the country for business purposes during these periods.

1.8 Travel & Transportation

1.8.1 Airline Travel

The Monseñor Óscar Arnulfo Romero International Airport (Aeropuerto Internacional Monseñor

Óscar Arnulfo Romero) is located about 50 km from the capital San Salvador.

Individual Entry Requirements

1. Valid Passport (should not be expiring in 6 months)

2. No visa required for less than 30 days stay

3. Airline Ticket

Copa Airline (Non-Stop): TT to Panama = 3 hours, 7 minutes; Panama to El Salvador

= 2 hour, 5 minutes

American Airline via Miami (Non-Stop): (US Visa required). TT to Miami = 3 hours,

55 minutes; Miami to San Pedro Sula = 2 hours 55 minutes; San Pedro Sula to El

MONTH DAY OBSERVANCE

January 1 Año Nuevo (New Year's Day)

April 17 Maundy Thursday)

18 Good Friday

19 Holy Saturday

May 1 Labor Day

August 4 Celebrations of San Salvador

August 5 Celebrations of San Salvador

6 Celebrations of San Salvador

September 15 Independence Day

November 2 All Soul's Day

December 25 Christmas Day

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Salvador = 50 minutes. Total flight is a minimum of 6 hours, 28 minutes and it is

dependent on the number of stops

Individual Exit Requirements

Valid Passport

Airline Ticket

Departure Tax = $34.86 which is included in the airline ticket price.

1.8.2 Ground Transportation

Taxicab services are normally provided within the perimeter of reputable hotels and are reliable.

However, the public transit bus service is not recommended.

1.9 Time Zone

Central Standard Time

UTC/GMT –6 hours

Time Difference: 2 hours behind Trinidad & Tobago

1.10 Communication

Calls from Trinidad to El Salvador = 011 – 503 – 8 digit phone number

Calls from El Salvador to Trinidad = 00 – 1 – 868 – 7 digit phone number

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SECTION 2: ECONOMIC AND POLITICAL ENVIRONMENT

2.1 Economic Performance

Indicator Economic Performance

GDP: $47.47 billion (2013 est.)

GDP per Capita: $7,500 (2013 est.)

Growth: 1.6% (2013 est.)

Currency:

The national currency is the US dollar

The current exchange rate is 1US$ = 1US$

Banknotes are available in $= 1; 2; 5; 10; 20; 50; 100; 500;1,000;

5,000; 10,000; 100,000

Coins are available in cents =1; 5; 10; 25; 50; 100

GDP by Sector:

Agriculture: 10.3%

Industry: 29.5%

Services: 60.1% (2013 est.)

Inflation Rate: 0.9% (2013 est.)

Agricultural Products: Coffee, Sugar, Corn, Rice, Beans, Oilseed, Cotton, Sorghum; Beef,

Dairy Products Source: CIA World Fact book

Despite being the smallest country geographically in Central America, El Salvador has the third

largest economy in the region. The economy took a hit from the global recession and real GDP

contracted by 3.5% in 2009. The economy began a slow recovery in 2010 on the back of improved

export and remittances figures. Remittances accounted for 16% of GDP in 2009, and about a third

of all households receive these transfers. In 2006 El Salvador was the first country to ratify the

Dominican Republic-Central American Free Trade Agreement (CAFTA-DR), which has bolstered

the export of processed foods, sugar, and ethanol, and supported investment in the apparel sector

amid increased Asian competition and the expiration of the Multi-Fiber Agreement in 2005.

El Salvador has promoted an open trade and investment environment, and has embarked on a

wave of privatizations extending to telecom, electricity distribution, banking, and pension funds.

In late 2006, the government and the Millennium Challenge Corporation signed a five-year, $461

million compact to stimulate economic growth and reduce poverty in the country's northern

region, the primary conflict zone during the civil war, through investments in education, public

services, enterprise development, and transportation infrastructure. With the adoption of the US

dollar as its currency in 2001, El Salvador lost control over monetary policy. Any counter-cyclical

policy response to the downturn must be through fiscal policy, which is constrained by legislative

requirements for a two-thirds majority to approve any international financing, and by already

high levels of debt. Source: CIA world fact Book

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2.2 Business

El Salvador ranked 118 in the 2014 Ease of Doing Business report. The main areas of concern are

protecting investors (170), paying taxes (165) and enforcing contracts (68).

2.3 Labour Force

2.4 Political Stability and Structure

Three powers:

Executive: President and Ministers

Legislative: 84 elected representatives

Judiciary

President: SANCHEZ CEREN (since 1 June 2014)

Political Party: ARENA

Presidential elections: Held every 5 years

SECTION 3: TOP MARKET OPPORTUNITIES & PROSPECTS

3.1 Aerated Beverages Products

El Salvador is a net importer of aerated beverages where the imported value of aerated beverages

each year exceeds the value being exported. There were minimal increases in the values of

imported drinks from 2007 to 2011; however the exported values of the beverages almost doubled

over the five years.

In the year 2007, El Salvador imported almost three times as much drinks as they exported but

by the year 2011 imports exceeded exports by less than 40%. Six countries were responsible for

all of El Salvador’s imports of aerated/soft drinks during 2011.

Guatemala was the principal supplier of the imported soft drinks to El Salvador during 2011. The

market is very concentrated as Guatemala alone supplied over 95% of the imports. The products

are usually transported via road across the border from Guatemala to El Salvador. Of the top

exporting countries only Mexico, Spain and USA pay between 10-15% tariffs, while the remaining

countries which have free trade agreement with El Salvador pay no tariffs.

A total number of seventy-four aerated beverages were observed in the market and 35% of the

drinks were imported from Embotelladora La Mariposa which is in Guatemala.

Labour Force: 2.738 million (2013 est.)

Labour Force by

occupation:

Agriculture: 21%

Industry: 20%

Services: 58% (2011 est.)

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The most promising sub-sectors for Aerated Beverages are:

Non-alcoholic beverages (excl. water, fruit or vegetable juices)

Waters including mineral & aerated, containing sugar or sweeting matter or flavored

3.2 Jams and Jellies Products

El Salvador is a net importer of jams/jellies. Even though the value imported has steadily declined

from 2007 to 2011 with the value being almost 50% less in 2011 as compared to 2007; the imported

value of the products each year still exceeds the value being exported. Imports increased slightly

from 2010 to 2011.

The value of items exported has increased over the five years and by the year 2011 had almost

doubled the value exported in 2007.

Three countries were responsible for 100% of the imports of jams/jellies into El Salvador in the

year 2011; Costa Rica, Mexico and Guatemala. The market is therefore very concentrated. None

of the countries pay any tariffs when exporting jam/jellies into El Salvador as they all have free

trade agreements with El Salvador.

The most promising sub-sectors for Jams and Jellies are:

Jams, fruit jellies & marmalades

Jams, jellies, marmalades, purees or pastes of fruit or nut pastes, obtained by cooking,

even with added sugar or other sweetening homogenized preparations

3.3 Juices

Statistics reveal that El Salvador has an active trade market for juices and research has shown that

El Salvador is a net exporter of juices. However, the country imports large quantities of juices

from Guatemala and Honduras.

The most promising sub-sectors for Juices are:

Other orange juices

Other mixtures, fruit juices, guava

Page 8 of 27

SECTION 4: MARKET ENTRY STRATEGIES

4.1 Using an Agent/Distributor

Retaining a local agent or distributor is strongly recommended in El Salvador. As with all

countries, care should be taken when appointing an agent as it can be costly to terminate the

relationship prematurely and difficult to establish definitive reasons for doing so. It should be

noted that redress for commercial disputes can prove difficult as a result of the damage suffered

by the Salvadoran legal institutions during the war. It may be prudent to hire a local attorney

when preparing contracts or when considering opening a business in El Salvador.

El Salvador has approximately 300 distributors of various sizes along with a distributors

association. The association has about 40 members and their membership accounts for the

distribution of 85% of the consumer products in El Salvador. Information on their members can

be obtained through the Distributors Association’s website www.ades.org.sv . Exporters wishing

to trade with El Salvadorian importers should verify the importers’ information by viewing their

information on the Distributors Association’s website (if they are a member) or by contacting the

country’s Chamber of Industry and Commerce.

Agency Legislation

Protection of the agent/principal relationship is enshrined in the Salvadoran Commercial Code

(Sections B and C of chapters III, Title III). The code stipulates conditions under which an agency

agreement can be terminated by the principal and also the terms of compensation that an agent

can claim if the principal ends a relationship contrary to the provisions in the Code.

4.2 Joint Ventures/Licensing

A joint venture is a contractual agreement in which "a merchant is bound to share, with one or

more persons contributing goods or services, the profits or losses arising from one or more of

his/her enterprise's operations or its turnover". Joint Ventures and the use of licenses of Trinidad

& Tobago exporters must be legally established in a contract signed by both parties. Both types

of relationships are regulated by the Salvadoran Commercial Code.

4.3 Franchising

As the economy has grown and investor confidence has increased, inquiries about franchises are

more common. With a continued rise in consumer spending, opportunities in this sector are

expected to increase.

4.4 Selling to the Government

Government tenders, domestic tenders, global tenders, tender notices, procurement news, project

information, business opportunities, international competitive bids, request for proposal (RFPs),

expression of interest (EOI) can be obtained for El Salvador. See Appendix I.

http://www.ades.org.sv/

Page 9 of 27

4.5 Employing Staff in the Market

There is no single national minimum wage, but it varies depending on the sector of the economy.

The base salary is lower in the agriculture sector, while the highest is in the trade and services

sector. See Appendix II.

SECTION 5: SELLING, MARKETING & PROMOTIONS

5.1 Selling Factors/Techniques

Selling factors and techniques are described in the following five steps to master the selling

process.

STEPS DESCRIPTION

1. Greeting

You need to ‘arrest’ the buyer:

Pay attention to dress, hygiene, grooming, handshake, etc.

Treat the buyer’s business card with respect and present your

business card in a professional manner.

Speak clearly, paying attention to voice, tone, eye contact, etc.

Use correct titles and surnames.

Have a positive body language.

2. Ask questions to

understand the

prospect

Don’t ask direct questions but ask leading questions in a

conversation type manner to find out the buyer’s need and what

he/she is looking for.

3. Present Benefits Present the benefits of your product/s or service/s in a manner

that aligns them to the need of the buyer.

4. Handle Objections

If the buyer is not interested in your product/s or service/s, don’t

end the meeting in despair, remain calm. Instead, take the

opportunity to find out more about the market and their needs so

that you can possibly make adjustments to your product to suit

their needs.

5. Close

It is very important to know and agree on the next steps which

should include a thank you email which captures the essence of

the conversation and the activities that would follow.

Other Tips

Be prepared

Know your business and your products

Be confident

Be a persuasive negotiator

Confirm appointments at least 24 hours in advance and be on

time.

Prepare your marketing tools e.g. brochures, samples,

PowerPoint presentations, etc. and make them come alive

with images.

Take notes and bring a note taker.

Page 10 of 27

5.2 Trade Promotion

Locally, exporTT offers trade promotion programmes periodically, including trade missions,

trade shows, trade fairs, matchmaking events, conferences, etc. These programmes are conducted

with a pre-approved budget and with an element of co-financing with the exporter for some

activities.

5.3 Advertising

El Salvador newspapers are among the best ways to promote sales of products and services.

Depending on the target market, advertising is also effective in magazines. Sales catalogues and

brochures should be translated into Spanish.

Some retailers use various sales promotion strategies such as in-store promotions, advertising on

their websites as well as daily specials in the newspapers. However, it is often expected that the

distributor will share the cost of the advertisement.

5.4 Direct Marketing

Limited communications and mail delivery capacity in El Salvador are obstacles to direct

marketing. However, with privatisation, telecommunications are improving and the government

is making efforts to upgrade its mail system. Door to door sales and direct-from-television sales

are increasing.

5.5 Distribution and Sales Channels

As in any market, El Salvador has the usual structure for a distribution pattern as follows:

The import channels are by way of an importer/distributor, and some of the larger supermarkets

import the item directly. Some of the wholesalers called “Mayoristas” also import items, but they

mainly purchase items from distributors and sell them to their customers as wholesale items.

Many items are sold through the “mayoristas” as they are numerous throughout the country and

their clients purchase the items to sell in their villages. One owner of a Mayorista explained that

they attach a 7% mark-up on their items.

There are some other variants to find the end customer, whereby the same channel of trade makes

an import without the intervention of an importer/distributor. Nevertheless this type of operation

is not preferable to key players like Selectos or Walmart due to the fact that the importing process

When using an interpreter, do not speak directly to the

interpreter as if the buyer is absent, however keep the

conversation focused on the buyer and allow the interpreter

to interpret accordingly.

Producer Importer/ Distributor

Channel

of Trade

End

Customer

Page 11 of 27

demands a lot of focus and therefore they have another enterprise making the imports and

distributions for them.

The following table provides information on each of the major supermarkets; Selectos, Walmart

and Hiper Europa:

NAME STORES MARKET

REACH

Selectos:

http://www.superselectos.com/wfsucursales.aspx

Owns the Brand: De Todo

More than 90 stores Entire country

Walmart:

http://walmartstores.com/AboutUs/9754.aspx

Owns the Brands: Despensa de Don Juan &

Despensa Familiar

2 Hypermarkets

25 Supermarkets

50 Despensa Familiar

Total 77

Selected areas

Hiper Europa 2 Supermarkets San Salvador

During our visit to the market, we were able to visit and asses some distributors or importers.

Some were willing to share information about their needs and were also interested in the offer of

Trinidad Tobago. Even though the Salvadorian market is a very competitive one, there exists

room to for products from Trinidad Tobago. Buyers are generally interested to hear about a new

offer, and if the economics are sufficient then a market entry should be considered.

5.6 Pricing

The main factors that will determine the end price for products include the channel trade margins

plus the import Taxes or DAI. Also, VAT is 13% to all products and there are special taxes to be

considered when importing alcohol beverages or liquors, cigarettes.

Example of Price Structure:

Cost Build up

Ex work cost 1.00$

Transport Cost from Plant to Port 0.03$

Cost of product FOB Puerto España 1.03$

Transport Cost 0.22$

1% of FOB Inssurance 0.01$

CIF 1.26$

15% DAI 0.19$

VAT 0.19$

Cost for discharging and Ware House 0.04$

Landed Cost of product w/o VAT 1.49$

18%-22% Margin for Importer / Distributor 0.33$

Landed cost with Importer margin 1.82$

13% VAT 0.24$

Selling price to trade channel w/o VAT 1.82$

Selling price to channel with VAT 2.06$

22%- 28% Margin of Channel Trade 0.51$

Selling price to consumer w/o VAT 2.33$

Selling price with VAT 2.64$

http://www.superselectos.com/wfsucursales.aspx

http://walmartstores.com/AboutUs/9754.aspx

Page 12 of 27

We have assumed any exports from Trinidad & Tobago will start with a 20 foot container and

will be handled as a consolidated transport, which means that various producer will use the same

logistics in order to make more feasible and efficient.

5.7 Payment Terms

Imports are subject to incoterms, which both parties can freely negotiate among themselves;

however, Cost, Insurance and Freight (CIF) is often the preferred option, while several others still

prefer to use Free on Board (FOB). While the method of payment can also be freely negotiated

between both parties, many importers have indicated a preference to obtain at least 30 days credit.

Once the business transaction has been defined, both parties should determine the means and

method of payment, opting to have a bank account with banks that have branches or relationships

with other banks.

In terms of the payment currency, the United States dollar is the preferred currency for trade

documents but other currencies are used when necessary.

Transport Cost Port Spain to San Salvador 2,500.00$

Lets assume

20 foot container 2,500.00$

8 pallettes 312.50$

each pallette 70 cartons 4.46$

each carton 20 units 0.22$

Cost per unit 0.22$

Cost of discharging 500.00$

20 foot container 500.00$

8 pallettes 62.50$



Cost per unit 0.04$

Cost to transport fro Plant to Port 300.00$

20 foot container 300.00$

8 pallettes 37.50$



Cost per unit 0.03$

Page 13 of 27

5.8 Protecting Your Intellectual Property

Protection against patent infringement can be implemented by executing administrative and

judicial actions.

Administrative Actions

These are based on the rights granted by the Intellectual Property Law, which provides that the

owner of a patent can stop its unauthorised use by a third party. If the patent was granted for a

procedure, use of such patent comprises manufacturing, sales, imports, storage and transit

through the country, plus prohibition to use the procedure. The limits to the right of ownership

are those mentioned in article 5 of the Paris Convention: private use, scientific investigation, and

commercialisation of the patent once its term of protection has lapsed.

The Intellectual Property Law provides an opposition procedure enabling the filing of

observations to the patentability requirements of a new invention, within two months after

publication of the patent extract notice in the Official Gazette. The applicant is granted the right

to reply to any observations made by third parties and after analysing both, the Patent Examiner

resolves whether or not the patent application moves to the examination phase.

Judicial Actions

These may be taken against patent infringement based on the Intellectual Property Law and the

Mercantile Code or based on the Criminal Code.

Intellectual Property Law and Mercantile Code-based actions must be filed before the Mercantile

Courts in the Judicial District of San Salvador or in a court with mercantile jurisdiction in other

districts. Criminal actions must be filed before the General Attorney's Office and their prosecution

is made before a criminal court.

The registration of a patent can be cancelled by filing a complaint before a Mercantile Court in

the Judicial District of San Salvador or in a court with mercantile jurisdiction in other districts.

Said cancellation action proceeds when it has been granted to a person other than the legitimate

owner of the patented invention. The Intellectual Property Law also grants the legitimate owner

of a patent, legal actions to re-vindicate it, if registered by an unauthorised third party.

5.9 Due Diligence

Before finalizing any contract whether for sale or representation, Trinidad & Tobago exporters

should obtain information on the bona fides of the foreign firms including reliable business and

financial references.

Also, the because of the language difference between Trinidad & Tobago and El Salvador, this

presents opportunities for serious miscommunication and misunderstandings and sometimes

with grave consequences. Therefore when entering into business with companies from El

Salvador, it is imperative to utilize the services of a competent bi-lingual attorney to avoid

communication failures.

Page 14 of 27

SECTION 6: REGULATIONS & STANDARDS

6.1 Sanitary Product Registration

El Salvador is a standards taker and not a standards maker. As such, EL Salvador does not have

specific food legislation for imported foodstuffs. Instead, the Health Code is the most widely used

tool to enforce local food safety. The Ministry of Public Health and Social Assistance is responsible

for all registrations and authorisations to import, manufacture and sell foodstuffs and beverages

as well as any raw materials used in the production process.

Food imports must be authorised by a certificate of free sale that is certified by the Environment

Safety Department. Fresh produce and products of animal origin are regulated by the Plant and

Animal Health Division of the Ministry of Agriculture. The certificate of free sale is valid for one

year.

Most food products are inspected for safety at the port of entry. However, the Ministry carries

out random testing at the retail and wholesale level to make sure that foodstuffs comply with all

the required health and quality standards.

In order for an exporter to register such products, an application must be filed at the

Environmental Health Department with the following information:

Petitioner’s name and address;

Product description;

Name, address and telephone number of the establishment or factory where the product

is manufactured;

Product use;

Name, address and telephone of the supplier in El Salvador;

Type of packaging material;

Net content;

Commercial brand name.

* If there are different flavours of the drink, each flavour of the drink must be registered.

This application must be filed with the following documents:

Power of attorney granted in favour of the El Salvadoran attorneys or the company

representative in the country, duly notarised at the nearest El Salvadoran consulate or by

notary public;

An original certificate of free sale of the product issued by Trinidad and Tobago health

authorities and Apostille. The certificate must be translated to Spanish and duly notarised

by an El Salvadoran lawyer;

Functioning licence of the local warehouse where the product will be stored, usually

obtained by the local distributor;

Page 15 of 27

Label of the product in Spanish (in various sizes if necessary), which will specify the

product name, list of ingredients, name of manufacturer, importer and/or distributor and

the expiration date, usage instructions if necessary;

Product samples: See specifications in 6.2 below.

Usually when clearing a product through customs, a customs inspector, a customs police officer

and a Health Ministry inspector are involved in the process. English is the commercial language

used for import documents. On average, it takes approximately 3-5 days to clear a product. Most

importers use a customs agent to expedite the clearing procedures.

Just to note, the Ministry of Hacienda has implemented a system called “Teledespacho” designed

to expedite the customs procedures. This system uses satellite technology to allow importers and

exporters to send their commercial invoices. (Source: USDA GAIN Report)

6.2 Product Shipment/Samples

Solid Products: 3 samples of the product weighing 200 grams each

Liquid Products: 3 samples of the product weighing 200 mls each

Alcoholic Beverages: 2 samples of 200mls each

Bottled Water: 1 sample of 3.785 litres for the physical-chemical analysis and 1 sample of 3.785

litres for the microbiological analysis

6.3 Packaging, Labelling and Marking Requirements

The following are the labelling requirements for products being imported into El Salvador:

Retailers must have the price of the product either on the packaging or in a visible place.

Products that are sold by weight or volume or any other measure must have the weight,

volume, or an exact measure of the contents on the label.

Labels on frozen and canned foods must include an expiration date.

Labelling must be in Spanish language. In those cases that the original label is not in

Spanish, a complementary Spanish label must be annexed to the product and should

comply with all the existing labeling requirements.

Nutrition facts must be stated on the back using the standards set by the USA.

Name and contact information plus phone number of the company responsible for the

importing and distribution.

The registration number of the company and also of the product being imported.

When the product is marketed in several presentations, there should be a label for each

presentation.

It was observed in the market that the soft drinks labels are similar to those in the Trinidad and

Tobago market, however most bottles are slimmer and longer than those supplied in this country.

Page 16 of 27

6.4 Temporary Entry

Customs may authorize temporary entry of foreign merchandise with temporary or partial

suspension of duties for specific purposes under the condition that the merchandise is re-

exported within the time authorized and without any modification. A bond must be presented as

the guarantee that the temporarily imported goods will be re-exported within the time

authorized. The temporary entry of merchandise to be exhibited in fairs and trade shows is

allowed provided that it will be exported in the same condition in which it arrived. Under the

"Ley de Equipajes de Viajeros Precedents del Exterior" (Law on Incoming Travellers’ Luggage),

small noncommercial imports not exceeding $500 or personal effects, as well as samples with no

commercial value (under certain conditions) can enter El Salvador with an exempt status from

import duties.

6.5 Customs Regulations

The Customs and Excise Division of the Ministry of Finance and the Economy is responsible for

approving all exports emanating from Trinidad and Tobago.

To export commercial goods, the exporter is required to have a customs broker fill out the

required documentation. Commercial and non-commercial exporters must also perform the

following actions:

Fill out a Customs Declaration Form (C82 Form) in four copies, which is provided by your

broker;

Submit the C82 Form along with other required documents (see below) to a customs officer

at a Customs and Excise office for signature;

Take the signed C82 Form and the goods to be exported to the Import/Export station from

which the goods are to be exported.

The basic documents required for exporting are as follows:

Invoice showing the price paid locally

Export licence (where applicable)

Certificate of origin (where applicable)

Page 17 of 27

SECTION 7: TRADE ENVIRONMENT

7.1 Import and Export Statistics

TOTAL TRADE – EL SALVADOR

Total Exports ($) $5,491,094,000

Total Imports ($) $10,771,953,000

Trade Balance ($) -$5,280,859,000

Exports of goods and services (% of GDP) 11.6%

Imports of goods and services (% of GDP) 22.7%

TRADE PARTNERS

# Top 10 Import Partners

Import

Volume

($)000

1 United States of America 4190622

2 Guatemala 935413

3 Mexico 746015

4 China 702958

5 Honduras 560501

6 Venezuela 286801

7 Costa Rica 282889

8 Nicaragua 202785

9 Korea, Republic of 202456

10 Netherland Antilles 198572

Figure 1 - El Salvador’s major import partners

Page 18 of 27

Figure 2 - El Salvador’s major exporting partners

TRADE COMMODITIES (at the 2 digit HS Code Level)

HS Code

(2 digit) Top 10 Import Commodities

Import

Volume ($)

'27 Mineral fuels, oils, distillation products, etc. 2030868

'84 Machinery, nuclear reactors, boilers, etc. 690723

'85 Electrical, electronic equipment 669620

'39 Plastics and articles thereof 654612

'87 Vehicles other than railway, tramway 401286

'60 Knitted or crocheted fabric 393610

'48 Paper and paperboard, articles of pulp, paper and board 344306

'52 Cotton 327255

'72 Iron and steel 311563

'30 Pharmaceutical products 300866

# Top 10 Export Partners

Export

Volume $

000

1 United States of America 2517514

2 Honduras 793301

3 Guatemala 721808

4 Nicaragua 323762

5 Costa Rica 229245

6 Panama 121742

7 Mexico 81895

8 Spain 79313

9 Canada 76685

10 Dominican Republic 74786

USA

NLD PAN

HKG NIC

GTM

OTHER

HND

CHN

MEX

SLV

Page 19 of 27

Figure 3 – El Salvador's major import commodities

HS

Code

(2 digit)

Top 10 Export Commodities Export Volume

($)

'61 Articles of apparel, accessories, knit or crochet 1779837

'39 Plastics and articles thereof 317981

'62 Articles of apparel, accessories, not knit or crochet 285412

'17 Sugars and sugar confectionery 279055

'48 Paper and paperboard, articles of pulp, paper and board 269302

'85 Electrical, electronic equipment 237742

'09 Coffee, tea, mate and spices 234885

'72 Iron and steel 168370

'22 Beverages, spirits and vinegar 156974

'19 Cereal, flour, starch, milk preparations and products 136752

33%

11%

11%

11%

7%

6%

6%

5%

5%

5%

Chart Title

'27 Mineral fuels, oils, distillationproducts, etc

'84 Machinery, nuclear reactors,boilers, etc

'85 Electrical, electronic equipment

'39 Plastics and articles thereof

'87 Vehicles other than railway,tramway

'60 Knitted or crocheted fabric

'48 Paper and paperboard, articles ofpulp, paper and board

'52 Cotton

'72 Iron and steel

Page 20 of 27

Figure 4 - El Salvador's major export commodities

Foreign Trade with Trinidad & Tobago, 2002-2013 (000 USD)

2009 2010 2011 2012 2013*

Exports 3,477 2,660 1,879 3,237 3,915

Imports 48,084 15,138 69,235 28,039 56,378

Balance -44,607 -12,478 -67,356 -24,802 -52,463

Total Trade 51,561 17,798 71,114 31,276 51,561

7.2 Import Tariffs & Taxes

In December 2008, the Customs Authority in El Salvador added to their website a section entitled

“Tariff Online Query” where companies can learn: the import tariff under a Free Trade

Agreement, if import permits are required, if there are import restrictions for a product, and

specifically which government agency is responsible for permit issuance. The Tariff Online Query

can be found at: http://appm.aduana.gob.sv/sacelectronico/

7.3 Trade Barriers

There are few trade barriers that affect the import of manufactured goods, however the barriers

may depend on the various product tariffs.

46%

8%8%

7%

7%

6%

6%

4%4% 4%

Chart Title Articles of apparel, accessories, knit orcrochet

Plastics and articles thereof

Articles of apparel, accessories, notknit or crochet

Sugars and sugar confectionery

Paper and paperboard, articles ofpulp, paper and board

Electrical, electronic equipment

Coffee, tea, mate and spices

Iron and steel

Beverages, spirits and vinegar

Cereal, flour, starch, milk preparationsand products

http://appm.aduana.gob.sv/sacelectronico/

Page 21 of 27

7.4 Prohibited and Restricted Imports

Prohibited items include: certain firearms; articles (items), publications, movies, etc. which are

immoral or obscene or pose a threat to the political, social, or economic order; opium with less

than 9% morphine, scraps and opium ash, and any material used for smoking those products;

non-stamped paper for cigarettes; counterfeit coins or bills, or machines for making these; certain

silver coins; tokens that can be used as substitutes for legal coins; coffee trees; coffee seeds for

planting; certain used vehicles; pet food and animal feed containing ruminant origin proteins.

7.5 Shipping Information

Shipping goods from Port of Spain may take as little as 5 days to San Salvador, El Salvador.

However, from Point Lisas to Acajutla, El Salvador, it may take 27 days. (Source: Linescape.com & JOCSailings.com)

It should be noted that schedules are subject to change and the cost of shipping often fluctuates

alongside the price of oil.

7.6 Trade Agreements

Multilateral Agreements

Agreement/Partner(s) Date of Signature

WTO members

07 May 1995

(Contracting Party to GATT

1947 as of 22 May 1991)

CACM members 13 December 1960

Free Trade Agreements

Central America - European Union

(Costa Rica, El Salvador, Guatemala,

Honduras, Nicaragua and Panama)

29 June 2012

Central America - Mexico (Costa

Rica, El Salvador, Guatemala,

Honduras and Nicaragua )

22 November 2011

Northern Triangle -Colombia (El

Salvador, Guatemala and Honduras) 9 August 2007

Taiwan (Republic of China) -

Honduras, El Salvador 7 May 2007

DR-CAFTA (Central America -

Dominican Republic - United States) 5 August 2004

Central America - Panama (Costa

Rica, Guatemala, El Salvador,

Honduras and Nicaragua)

6 March 2002

Central America - Chile (Costa Rica,

El Salvador, Guatemala, Honduras

and Nicaragua)

18 October 1999

http://www.sice.oas.org/trade/ur_round/58.asp

http://www.sice.oas.org/trade/ur_round/58.asp

Page 22 of 27

Central America - Dominican

Republic (Costa Rica, El Salvador,

Guatemala, Honduras and

Nicaragua)

16 April 1998

Partial Preferential

Agreements Venezuela (AAP.A25TM N° 27) 10 March 1986

SECTION 8: FINANCING EXPORTS TO COSTA RICA

exporTT Limited provides co-financing options (50% reimbursement) for the following market

access activities:

a. Product Registration

b. Trademark Registration

c. Product Testing

d. Translation & Interpretation Services

e. Legal representation for product, brand and trademark registration

f. Booth rental at trade shows

g. Business to business matchmaking services

h. Shipping of samples

i. In-store marketing and promotions

j. Booth design at trade shows

k. Ground transportation for exporTT led groups at trade missions and trade shows

l. Brand registration

m. Label modification

n. Registration at international capacity building forum/workshop

Please contact the following person or any other exporTT representative for more information on

these services:

Mr. Crisen Maharaj

Manager- Capacity Building and Programme Financing

exporTT Limited

151B Charlotte Street

Port of Spain

Tel.: (868) 623-5507 Ext. 362

Fax: (868) 625-8126

Mobile: (868) 796-4276

Email: [email protected]

Website: www.exportt.co.tt

mailto:[email protected]

http://www.exportt.co.tt/

Page 23 of 27

In addition to local banks, to obtain information on financing exports to El Salvador, please

contact:

Mr. Shaun Waldron

Manager, Credit & Business Development

Export Import Bank of Trinidad & Tobago Limited

#30 Queen's Park West,

Port of Spain

Phone: 1-(868)-628-2762 Ext. 288

Fax: 1-(868) -628-9370


Website: www.eximbanktt.com

SECTION 9: USEFUL CONTACTS

9.1 Trinidad and Tobago

Ms. Roann David

Export Officer

exporTT Limited

151 B Charlotte Street

Port of Spain

Trinidad W.I.

Tel: 1-868-623-5507 Ext. 226

Mobile: 1-868-477-8031

Fax: 1-868-624-3919/625-8126


Website: www.exportt.co.tt

El Salvadoran Embassy in Port-of-Spain,

Trinidad and Tobago

29 Long Circular Road

St. James

Port-of-Spain

Trinidad and Tobago

Telephone: 1-868-628-4454

Telephone/Fax: 1 868-622-8314


Head of Mission: Mr Raymundo Ernesto

Rodriguez Diaz, Ambassador

Customs and Excise Division

Government of the Republic of Trinidad and Tobago

Custom House (Port-of-Spain)

Abercromby Street, Port of Spain

Phone: 1-(868)-625-3311


Web: www.customs.gov.tt


http://www.eximbanktt.com/


http://www.exportt.co.tt/



http://www.customs.gov.tt/

Page 24 of 27

Shipping Agencies

Shipping Association of Trinidad & Tobago

15 Scott Bushe Street, Port of Spain

Phone: (868)625-2388, (868)623-3355

Fax: (868)623-8570


Web: http://shipping.co.tt/member%20search.php?id=1&page=1

Translation Services

A list of official translation and interpreting agencies approved by the Ministry of Foreign Affairs,

Trinidad and Tobago can be found in Appendix III.

9.2 El Salvador

Cámara de Comercio e Industria de El

Salvador

(Chamber of Commerce & Industry)

9na. Avda. Norte y 5ta. Calle Poniente

Apartado Postal 1640

01118 SAN SALVADOR

El Salvador

Tel: (00503) 2712055/(00503) 2816622

Fax: (00503) 2226593/(00503) 2714461

Email : [email protected]

Web: http://www.camarasal.com

Trade Point El Salvador

Res. Santa Elena-Bd Orden de Malta

Edificio D´Cora La Libertad

SAN SALVADOR CA

El Salvador

Tel : (00503) 2782204

Fax : (00503) 2782216



Web: http://www.tradepointelsalv.com

Corporación de Exportadores de El Salvador

(COEXPORT)

(Association of Exporters)

Gerencia de Programas

Col. Jardines de Guadalupe

Condominios del Mediterraneo 2

05235 SAN SALVADOR

El Salvador

Tel: (00503) 2433110/(00503) 2431328-29

Fax: (00503) 2433159



Web: http://www.coexport.com

Banco Central de Reserva de el Salvador

Centro de Trámites de Exp.(CENTREX)

(National Trade Promotion Centre)

Alameda Juan Pablo II y entre 15 y 17

Avenida Norte

06106 SAN SALVADOR

Tel : (00503) 2818088-90

Fax : (00503) 2818086



URL: http://www.elsalvadortrade.com.sv


http://shipping.co.tt/member%20search.php?id=1&page=1


http://www.camarasal.com/



http://www.tradepointelsalv.com/



http://www.coexport.com/



http://www.elsalvadortrade.com.sv/

Page 25 of 27

Ministry of Public Health and Social Assistance

Calle Arce No. 827

San Salvador, El Salvador

Web: http://www.salud.gob.sv/

Regional Customs Integration, Central America Economic Integration System (SIECA):

http://www.sieca.int

National Science and Technology Council (CONACYT): http://www.conacyt.gob.sv

Standards Inquiry Point: http://www.infoq.org.sv

Ministry of Economy: http://www.minec.gob.sv

Customs Authority: http://www.mh.gob.sv/portal/page/portal/PMH/Institucion/Aduana

El Salvador Official Journal: http://www.imprentanacional.gob.sv

Distributors Association: www.ades.org.sv

http://www.salud.gob.sv/

http://www.sieca.int/

http://www.conacyt.gob.sv/

http://www.infoq.org.sv/

http://www.minec.gob.sv/

http://www.mh.gob.sv/portal/page/portal/PMH/Institucion/Aduana

http://www.imprentanacional.gob.sv/

http://www.ades.org.sv/

Page 26 of 27

Appendices

Appendix I – Government Tenders from El Salvador

Government Tenders, domestic tenders, global tenders, tender notices, procurement news,

project information, business opportunities, international competitive bids, request for proposal

(RFPs), expression of interest (EOI) from El Salvador.

Government Tenders, Global Tenders, Procurement News, Project Information

279 Record Matches Your Request

Showing 1 - 10 Records

Tender Notice Type: Prequalification Country : El Salvador

Tender Category: Marine , Infrastructure and construction

Description: Project To Dredge The Access Channel And Basin Of La

Union Port

Action Deadline: 13 Oct 2014 Ref. no.: 23758790

View Tender Details: View Details

Tender Notice Type: Tender Notice Country : El Salvador

Tender Category: Banking, Finance, Insurance and Securities (BFIS) , Services

Description: Consulting services to develop hiring strategy to promote

investment and action plan for niche auto parts

Action Deadline: 15 Sep 2014 Ref. no.: 23758638



Tender Category: Energy, Power and Electrical

Description: Consulting Energy Efficiency in Public Buildings



Tender Notice Type: Prequalification Country : El Salvador

Tender Category: Consultancy - Management, business and administration ,

Roadways , Consultancy - Engineering

http://www.globaltenders.com/auth.php?action=details&id=23758790



Description: Consultancy Service for the Elaboration of Multidisciplinary

Study for Feasibility of Roads




Tender Category: Technology Hardware and Equipment

Description: Acquisition of computer equipment to strengthen ala

Dirección National Financial Management and Innovation in

the development of new SAFI II GRP




Tender Category: Services , Marine

Description: Concession process for the multipurpose container terminal

of the port of the union.

Action Deadline: 02 Dec 2014 Ref. no.: 23732925



Tender Category: Automobiles and Auto Parts , Healthcare Equipment and

Services

Description: Acquisition Ambulances for Emergency Medical Service

Action Deadline: 14 Oct 2014 Ref. no.: 23717809


Tender Notice Type: Project Information Country : El Salvador

Tender Category: Services , Education and Training , Environment and

Pollution

Description: Strengthening the capacities of vulnerable families through

awareness processes, environmental awareness and

education





Action Deadline: N.A. Ref. no.: 23699815



Tender Category: Agriculture, Food and Beverages , Services

Description: Generate sustainable livelihoods, through the establishment

of organic home gardens in the community Las Moras,

Jiquilisco Township Department of Usulutan




Tender Category: Agriculture, Food and Beverages , Services

Description: Generate sustainable livelihoods, through the establishment

of home gardens and organic energy forests in the

community Romero, Suchitoto, Cuscatlan Department






Appendix II – Minimum Wages

With effect from 01-01-2014 to 31-12-2014

Approved revision date: 01-01-2015

Information last updated on this page: 06-03-2014

The minimum wage rates in the table are in $ (US Dollar)

Industry Minimum Wage per Day Minimum Wage per Month

Textiles and Clothing 6.76 202.80

Hours per week specified: 44

Industry 7.90 237.00


Commerce and Services 8.08 242.40


Agriculture 3.79 113.70


Coffee Harvest Collection 4.13 123.90


Sugar Harvest Collection 3.50 105.00


Cotton Harvest Collection 3.16 94.80


Benefits of Coffee 5.48 164.40


Benefits of Cotton and Sugar 3.98 119.40

Hours per week specified: 44 Source; Decretos 103, 104, 105 y 106. Diario Official N° 119 tomo 400 Del 01/07/13

Notes/Footnote

1. There is no single national minimum wage, but that is different depending on the sector

of the economy. The base salary is lower in the agriculture sector, while the highest is in

the trade and services sector.

2. In late June 2013, the National Minimum Wage (MNHA) approved a 12% increase in the

legal minimum wage for all sectors to be implemented in three tranches, over a period of

18 months.

3. The agreement, signed by order of the President, determines an increase of 4% from 1 July

2013, on 1 January 2014 another 4%, and the remaining 4% on 1 January 2015.

4. Work hours per week is 44 hours.

Appendix III – Public Translators

(Approved by the Ministry of Foreign Affairs, Trinidad and Tobago)

1) Mr. Kelvin Hoskins

#3 O’Connor Street, off Dickson Avenue, Diego Martin

Tel: 352-2238/632-8286

2) Ms. Doris Millan

#42 Saddle Road, Maraval Spanish

Tel: 753-0643/628-8414

3) Mr. Jaime Graells

#28 Old Paddock Road, Blue Range, Diego Martin

Tel: 759-5218/637-7140

4) Mr. Luis Arreaza

# 38 Carlos Street, Woodbrook Spanish, French

Tel: 764-8683

5) Mr. Chantale Leonard-St. Clair

Director (Ag.)

Translation & Interpreting Services Unit

College of Science Technology and Applied Arts

of Trinidad and Tobago (COSTAAT)

Tel: (868) 625 5030 Ext. 5270

Fax: (868) 627 5714

E-mail: [email protected]; [email protected]

6) Mr. David Coutisson

Director

THE ALLIANCE FRANÇAISE French

# 17 Alcazar Street, Port of Spain

Tel: 622-6119/6728

7) Eric Maitrejean

CITB Coordinator

Caribbean Interpretation & Translation Bureau

University of the West Indies Spanish, French, Arabic

St. Augustine Campus, St. Augustine

Tel: 662-0758


Spanish, French, Portuguese,

Dutch, German




Documents

El Salvador Market Guide - October2014